COOPEEATIVE ORGAXIZATIOX BLTSINESS METHODS. 21 



. 3. Bookkeeping ma}' be defined as the systematic and chronological 

 recording of financial transactions. 



4. The double-entry method is the best for keeping any set of 

 books, as it allows an equalization of debits and credits which affords 

 a complete check on all entries. 



5. The great number of books now used in recording financial 

 transactions are forms of the journal and ledger, and the principles 

 of double entry should apply to all books used for the recording of 

 financial transactions. 



6. It is of tlie utmost importance that a trial balance be taken each 

 month. The trial balance is the best method of proving the mathe- 

 matical accuracy of the books. 



T. A convenient method of preserving the trial balance for future 

 reference is that of using a trial-balance book. 



8. Essential requirements for a system of accounting records for a 

 cooperative marketing organization are — 



(a) A complete set of financial records showing the business trans- 

 actions and the results thereof. 



(h) A record of each member's transactions with the organization. 



(c) Capabilit}' of taking care of a maximum amount of business 

 during the shipping season. 



(d) Capability of returning to the membei-s the proceeds from 

 their products Avithin a reasonable time. 



(e) Clear pooling records when kept, so that any discrimination 

 can be shown quickh^ 



(/) Auxiliary records which w^ill give statistics and valuable in- 

 formation for the conduct of the business. These records must be 

 accurate. 



0. No two cooperative organizations are exactly alike. It is neces- 

 sary, therefore, that a s^'stem of accounts, to l)e most successful, be 

 devised to fit the business for which it is intended. 



10. Cai-e shouhl be exercised in devising columnar forms, in order 

 that columns which will be used rarely are not added, making the 

 forms cumbersome. All statements showing i-eturns or ledger ac- 

 counts to growers shoidd be so headed and constructed that they 

 may be perfectly plain and intelligible at first glance. 



11. There are numerous laboi--saving devices foi- reducing the cost 

 of accounting Avhich nuiy be used to great advantage by coopei'ati\o 

 organizations. 



V2. Every coopei'ative organization should have an accountant who 

 is thoroughly familiar with the- business, in order that he may con- 

 duct the office properly. 



18. Minutes in prf)per form of all stockhohh'rs' or members' and 

 directors' meetings should be kept. 



